Introduction to cryptocurrency – ICOs, blockchain, FinTech and many more

Cryptocurrency is the most in vogue topic at the moment because many people express their interest in the digital world. Getting rid of paper money and starting an entirely new journey with virtual ones seems to be a change of the future. Cryptocurrency represents the bridge between traditional payment methods and the new ones, that are now disrupting everything that people know about money. Even though it might be difficult to assimilate all the changes that happen in the virtual world and technology altogether, staying up to date with the relevant information about the topic is a must. You never know when the whole movement becomes the immediate reality, so here’s a short introduction to all the concepts implied by cryptocurrency:

What is an ICO?

ICO comes from Initial Coin Offering and it represents a concept that rules the cryptocurrency market at the moment. ICOs involve selling a stake of a company by using a crowdfunding campaign, which may or may not be open to the large public. By investing in an ICO, you get the chance of obtaining coins in return. These coins can grow exponentially in the nearby future, which means you might get ten times or more of the initial sum of money you invested in the offering. It is risky, but participating in ICOs is the trend of the present. New cryptocurrency coins appear each month, so the existence of ICOs is more and more poignant. The benefits of investing in ICOs are diverse, among which one can number the store of value and the dividends. Storing monetary value can represent a serious source of profit if you know the market right. Dividends are a chance to distribute these profits after your own liking.

Since people are directing their attention to coin ICOs, the market reached the tremendous amount of $40 million, which says a lot about the interest of people in this new branch of business. Purchasing a personal wallet for storing cryptocurrency coins and participating in ICOs is a great opportunity for people who own businesses, but for individuals who are passionate about the topic as well. What you should understand about ICOs is that you don’t lose any money – if the funding target of the ICO is not met, you will receive your investment back. There’s nothing to lose when investing in ICOs, so go ahead and find out more about this topic.

Blockchain technology

Blockchain is the technology behind cryptocurrency and many more other potential breakthroughs in different industries. Blockchain tech is not limited to cryptocurrency, but its benefits were first visible after the apparition of Bitcoin. It represents a digital ledger which is able to track transactions on a P2P network. The best part about blockchain is that the information that goes through it is encrypted. Every action that happens in the blockchain is tracked, and the respective record can’t be affected afterward.

Decentralization is another considerable factor in the use of blockchain technology, as it doesn’t involve a third party in handling transactions, such as banks. Everything is free of a certifying authority, which makes transactions faster. You may have heard of this technology in relation with cryptocurrency only, but the truth is it can be applied in many other industries other than finances. Blockchain can be used in banking, healthcare, insurance or even the public sector. The role it will pay in the future is notable. This is why you should understand how it works to be able to use it properly later. Besides tracking transactions and making cryptocurrency transfers efficient, blockchain can store and safely share electronic contracts, records and other types of encrypted information.

FinTech disruption

FinTech comes from financial security and it seems to disrupt everything people know about payments. FinTech is said to be the greatest tech innovation that will entirely change the way people make payments by the year 2030. People should get ready for fully cashless payments in the future. However, there is one factor that worries financial professionals – security. How secure FinTech payments are? Well, the present means of security might not be entirely safe for payments, as they can be hacked, but the predictions say that biometrics will develop visibly in the next few years. All the worries related to security should be gone, as the safety of people’s transactions will be strictly correlated with their own body.

FinTech can work with three different types of technology at the moment – API, AI and the aforementioned blockchain. Application Programming Interface and Artificial Intelligence are the focal points of the tech world. APIs can be easily integrated and they represent a set of communication protocols and methods that allow the safe and stable build of a software. The developer no longer has to spend a lot of time understanding the operations running behind a process, as the API does the job itself. As for AI, it plays a great role in the development of cryptocurrency and other industries as well. No wonder why AI-based crypto projects stir so much interest among people who work with technical concepts. This concept has entered numerous industries and it holds great potential.

Utility and security tokens

Tokens can be used in various ways, so there is no generalized definition that can be applied to the term. Yet, there is a major difference between coins and tokens in cryptocurrency. Crypto coins are forms of currency, while tokens are used during ICOs for the store of value. Tokens are part of an existent individual platform (a coin). Token value can be calculated by taking into account its role, features, and purpose. Utility tokens are gateway tokens, meaning that they give access to a network, but they don’t have a value of their own, and they don’t represent an opportunity. On the other hand, security tokens are the ones that draw their value from other assets, usually external with a possibility to trade. Security tokens are subject to penalty if certain rules and regulations are not respected. If the regulations are respected though, security tokens are quite useful as use-cases.

Hello, I am Abhishek Yadav, I am an Internet Marketer and a Blogger. along with blogging I also have some Programming and content marketing skills. Connect with me on Twitter @Abhinemm to know more about me :)